Investors still flock to Cebu despite power problem

(The Freeman) Updated October 21, 2009 12:00 AM

CEBU, Philippines - The Department of Energy-7 admitted that there is a scarcity of reserved energy supply in Cebu which has caused numerous power shortages in the past few months.

DOE-7 Regional Director Antonio Labios said that compared to last year which had only 14 brownouts, there have been more this year caused by the deficient reserve of supply of energy.

However, this problem on energy supply did not deter the entry of investors to Cebu, according to Mr. Carlos Co, chairman on the committee on power of the Cebu Chamber of Commerce and Industry (CCCI).

Mr. Co said that they have explained to potential investors that the energy supply in Cebu is being addressed to and would be normalized by next year.

He said that with the help of the projects being implemented to help gain more supply like in Toledo, it would increase the supply to 75 percent from the present 20 to 30 percent supply that is being produced.

Co said that even with the emerging business establishments in Cebu and the continuing demand by these companies for energy, “the added energy would be enough for the next three to four years.”

Co explained that is one of the main concerns asked by investors before they do business in the city aside from water and other supplies for operations.

According to Co, their members are also aware already of the problem with the power supply which has been going on for a year especially the industrial companies which all do not have the capacity to operate through generators.

He said that their members were already notified of this and some have made the needed measure like providing their generators despite its need for a large investment.

Co however said that they are optimistic of the progress in the energy supply by 2010.

Statistics from DOE showed that the availability of the power was 1,140 MW but the system peaked reached to a 1,174MW which shows a short scarcity of supply.

According also to the update on the power supply in Visayas for September 4-10 this year, the peak demand for Cebu was up to 566 but the highest available capacity was only 324. In Negros , it showed that the peak demand was 217 but the available capacity was 180. The situation was the same in Panay that showed a 207 demand but a 166 highest available capacity.

But Labios said that they are hoping to stabilize the supply of energy by next and have enough reserve to regulate the smooth flow of energy supply.

This as on-going power generation projects are being implemented in Cebu particularly the project in Toledo and Naga.

Labios said that the Circulating Fluidized bed at Toledo City of the Cebu Energy Development Corporation would supply power to the Visayan Electric Company, Balamban Economic Zone and the Carmen Copper. The CFB project would produce 246 MW supply which would be added to another CFB project in Colon Naga that would produce 200MW of power.—AJ dela Torre